India and Cross-Border eCommerce

November 29, 2021
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The e-commerce sector has grown worldwide. China stands first in the global ranking of the e-commerce sector, and India grabbed the ninth rank, and Japan is in tenth place in the e-commerce ranking.

India is well known for its diversity and the culture that flourished in the nation. The uniqueness and the beauty mesmerize the heart and attract the viewer more towards it. India has the second-largest population in the world. After Liberalization in 1991, India’s economy grew hugely and has been an integral part worldwide. The growth rate of India’s economy from 2000 is around 4.5% to 5% annually. In the case of GDP ranking, India stands 7th being one of the largest democratic countries in the world.

E-commerce and its growth Indian market

Amazon and Flipkart have captured the Indian market and say India is the best place for an e-commerce start and makes it worthy of using such as the great platform to make the market deals. India’s compound annual growth rate is about 17.8% between 2019-2023, and 25% of retail sales to mark market growth.

In the current scenario, the digital platform is in the hike to capture the market and attention of their customers. India is making its hand in the tech business to get a great sale through online purchasing. The manufacturing sector grabs 100% FDI for the growth and flourishing of the market, which will help in the rise of the economy in an unpredictable manner.

Cross-border e-commerce also sets the excellent market value and a great outcome of its sale. As per the Global E-commerce survey, 73% of the Indian delays in cross-border purchasing of the products and gets the order canceled because of its high delivery rate. The rate of shipping touches the sky in some products that are even calling it costs the same.

During the Pandemic, when the nation was struggling with lockdowns and shutdowns and shopping from a local market was a hectic schedule. At times, Online purchasing of goods came to help in the broadway to fulfill the basic requirements of the users and the

consumption of the goods also increased at a reasonable level.

A statement arose from India Brand Equity Foundation that the e-commerce sector in India will touch $200 billion by 2026, which used to be $38.5 billion in 2017.

Ecommerce Investment and its collaboration with other businesses

The most usable and close to heart player like Facebook is making a connection with Reliance Jio to get into the market for business purposes and making benefit out of it. Some others like Google are in with the Jio business with approx. US$4.5 billion. With the advancement of mobile phone and web services, the online reach has been extended in a broad way to mingle more customers in it. Just a click and the benefits are available on our doorstep without any negligence and delay.

The services come with a return policy, and as a customer, you can raise complaints in any. The web connections in India in August 2020 were around 760 million as per the computerized program. The use of cell phones to purchase the products has been enhanced by 8% to reach 50million in the 2020 quarter.

Even if you look at the cell phone brand, then Xiaomi has captured 23% of the Indian market, whereas Samsung is way ahead by 24% to grab the customer’s attention and their purchasing.

The types of Business models

There exist two types of Business models to revive the e-commerce market. The first one is the Direct Purchase Import Model, and the second is the Subsidiary Model. Let’s learn about each of these and briefly explore the meaning.

Direct Purchase Import Model

Direct purchase Import Model is all about the company getting registered in India will import the products or goods from cross-border companies and pay all the required taxes to clear the products from the customs port. The Indian business tycoon will sell the products over an online portal to earn the profit as per the market sales.

This is one of the most acceptable ways to get cross-border goods into the Indian e-commerce platform, legalized and sophisticated.

Subsidiary Model

This model talks about the company with its subsidiary branch in India, and the main office is situated in a foreign country. The Subsidiary company will import the products and goods and get them into the warehouse as there is 100% FDI when there is any subsidiary company in India. They sold the goods in the wholesale market to the shareholder, and they chose to sell the goods in any online e-commerce portal to gain profit.

To make it quite vivid, the foreign company takes complete care of the subsidiary company in India and precisely looks into it.

The Companies leading the e-commerce market


Amazon is one of the leading players in the e-commerce platform to get more attention in shopping and watching movies or series. It has framed the idea of publishing films, studios, music, web services, and many more. It has replaced hardcover books with e-books with the help of Kindle, tablets, and echo devices.


Initially, Flipkart was established as an e-commerce book shop in 2007. Later in the period, it started dealing with mobile phones and motion pictures. In the current scenario, the Institution has about 80 million items in its e-commerce portal with approx. 8,000,000 products each month. The prices are reasonable and affordable, and it fascinatingly attracts the customer. It also adds coupons and discounts to get the products at a cheap rate compared to the MRP rate.


Paytm is the best payment platform for any e-commerce portal. It has a wallet approved by RBI, and the user needs to follow KYC norms to operate such a platform in an easy-to-go way. Many crowds are engaged in this platform even to get the cash back or other rewards to encourage more transactions.

The e-commerce platform is gaining weight in the online market and making it easy for further services as and when needed.


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